A Sign of the Credit Crunch Was the Sharp Increase

question 57

True/False

A sign of the credit crunch was the sharp increase in credit spreads on non- government paper.

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Definitions:

Cross-sectional Analysis

A type of analysis that examines data collected at a single point in time across multiple subjects, variables, or segments.

Economic Activities

The actions that involve the production, distribution, and consumption of goods and services in an economy.

Return on Assets

A performance metric that measures the profitability of a company relative to its total assets.

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any jurisdiction.